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Metro fare increase proposed to offset rising diesel
costs
Sims said he is committed to maintaining existing Metro service and continuing with the 10-year Transit Now expansion plan. He does not want to see high fuel prices erode service. “This worldwide fuel crisis comes at a time of historic ridership growth for Metro Transit – and is the reason why residents are turning to transit in record numbers as their own budgets are squeezed,” Sims said. “But, the same rising fuel costs contributing to Metro’s popularity are making it more expensive to deliver service and maintain aggressive transit-growth plans. “This fare increase will allow us to continue to move forward in an effort to meet the extraordinary demand for more transit, not slip backward at a time when these services are needed the most,” Sims said. Because it buys diesel in bulk – more than 12 million gallons a year – Metro pays a discounted price for its fuel. It is also exempt from many of the taxes paid at the pump. Still, Metro’s costs for fuel have risen more than 60 percent alone this year. Weekday bus ridership for the first three months of 2008 is 6 percent higher than the same period last year. The increase in bus ridership is bringing in some new fare revenue, but not enough to cover the rising cost of fuel. Many of those new riders have passes previously purchased by themselves or their employers, and are now using them for the first time or more often. In most cases, this usage does not generate new revenue for Metro.
The proposed October fare increases will significantly improve – but not solve – the funding gap stemming from rising fuel prices. So, Metro is proposing additional steps to offset rising fuel costs. It’s asking the King County Council to reconsider its prohibition of wrapped advertising on Metro buses and is taking steps to develop a fuel-hedging program aimed at reducing fuel price volatility. The cost of fuel is impacting transit agencies all across the nation. In the Northwest, transit agencies such as Tri-Met in Portland, Snohomish County’s Community Transit and Kitsap Transit have recently adopted or proposed fare increases in the 25-cent to 75-cent range due to the rising cost of fuel. Metro believes its proposed 25-cent increase is low enough to maintain its system as an affordable alternative to driving. More information about the proposed fare increase is available online. |
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